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Wages as conditional fixed expenses: business planning analysis

Wages as conditional fixed expenses: business planning analysis

Why wages are, in fact, conditionally constant expenses, regardless of where we are trying to attribute it - to variable costs or fixed costs.

Even if an employee working under the piecework-premium labor system does not fulfill the plan (for example, due to a decrease in market consumption of this product or other reasons related to the production and organizational process), the organization will still have to maintain it. Or the average monthly income they have not received can help them find a better alternative in terms of earnings.

Therefore, when calculating the cost of business planning, it is necessary to lay down at least the average industry level of their average monthly earnings for standardized employees in case the volume of standardized work does not allow them to provide at least this minimum.

For sure, in practice, we often had to deal with such a situation when an employee needs to add or increase his average monthly income if he has not reached an acceptable level according to the norms. This is done even by performing some non-core work, for example, digging and burying, even if it does not bring any benefit to the economy.

автор - Михаленко Р.
M R. Автор - kaktotak.by Specialization: financial and economic design - modeling of business, investment projects of the real sector, analysis and evaluation of efficiency, optimization of the management decision system.

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